McDonald’s Considers $5 Meal Deal to Bring Customers Back

In a strategic move to boost customer visits amidst slowing foot traffic and rising inflation, McDonald’s is contemplating the introduction of a new $5 meal deal across its restaurants in the United States. The proposed meal includes options such as a McChicken, a McDouble, or four-piece Chicken McNuggets, along with fries and a drink.

This consideration comes as part of McDonald’s broader efforts to maintain affordability and attract customers, especially those feeling the pinch of higher prices across the board. Chris Kempczinski, McDonald’s CEO, emphasized the need for affordability during an earnings call on April 30, noting that “consumers continue to be even more discriminating with every dollar that they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry.”

Discussions about the $5 meal are ongoing between McDonald’s corporate leadership and franchise owners. The meal aims to offer substantial value without compromising on quality—a balance that is increasingly challenging to achieve as the company faces higher labor and ingredient costs.

McDonald’s is not alone in facing these challenges. The fast-food industry at large has seen menu prices increase substantially. According to FinanceBuzz, McDonald’s has raised its menu prices the most significantly among U.S. fast-food chains from 2014 to 2024. A January poll by Revenue Management Solutions found that about 25% of people earning under $50,000 annually are reducing their fast food consumption, citing cost concerns.

The $5 price point is not unprecedented in the fast food industry. Wendy’s, for instance, has been offering a similar value with its 4 for $4 meal since 2015 and later, the $5 Biggie Bag. These deals have set a precedent that McDonald’s is looking to match or exceed.

Fast food chains like McDonald’s are trying to navigate the delicate balance of maintaining profit margins while offering value to customers. Analyst Mark Kalinowski of Kalinowski Equity Research pointed out, “When you look at McDonald’s, they’re not getting a majority of high-income customers—the middle- and lower-income class are the bulk of their business. They need to be cautious with their spending, and that’s what you’re seeing right now.”

While McDonald’s has not yet confirmed the rollout of the $5 meal deal, the potential introduction is being closely watched. If implemented, it could play a pivotal role in determining the company’s ability to attract and retain price-sensitive customers, especially in a highly competitive market.

As the discussion continues, the outcome will likely have significant implications not only for McDonald’s but also for the broader fast-food industry, as companies adapt to a landscape shaped by inflationary pressures and changing consumer behaviors.